Background

FRP was instructed to undertake an independent investigation into the business practices of a client’s marketing function. The client’s finance team had identified instances whereby supplier invoices were falsified in order to expedite claims for third party marketing funding. In addition to quantifying the amounts that had been claimed and identifying who was responsible for falsifying documents, the client’s auditor required comfort that knowledge of the practice was limited to the marketing team.

Action

Our Forensic Services team reviewed the initial investigation steps taken by the client and then undertook an in-depth analysis of the marketing funding claims and the supporting evidence. We then interviewed relevant employees to understand the extent of the practice of falsifying documents, who instigated it and who within the organisation had knowledge of it.

To corroborate statements made by interviewees, our in-house Forensic Technology team performed an e-review which resulted in the identification of other employees who actively participated or were aware of the practice. The team also performed targeted searches to identify if any of the marketing funding claims could be supported by actual marketing expenditure.

We assisted the client by preparing a written report which quantified the marketing claims that had been supported by falsified documentation and highlighted the involvement of the various employees in the marketing team.

Outcome

Our client was able to use the report to further substantiate the findings from its internal investigation and to take disciplinary action against the employees involved. The report was also provided to the client’s auditor to give comfort over the monetary impact of the claims and show that the finance team were unaware of the practice.

In addition, the client was able to disclose our findings to the marketing funders to provide assurance that the irregularities had been thoroughly investigated.